In this article, we discuss 5 housing stocks Redditors are buying. If you want to see some more housing stocks on the radar of the Reddit community, click 10 Housing Stocks Redditors are Buying.
5. KB Home (NYSE:KBH)
Number of Hedge Fund Holders: 36
KB Home (NYSE:KBH) was founded in 1957 and is headquartered in Los Angeles, California. It operates as a homebuilding company, offering its services in Arizona, California, Colorado, Florida, Nevada, North Carolina, Texas, and Washington. KB Home (NYSE:KBH) also provides insurance and title services.
On April 11, KB Home (NYSE:KBH) declared a quarterly dividend of $0.15 per share, in line with previous. The dividend is payable on May 19, to shareholders of the company as of the close of business on May 5. The company also plans to repurchase up to $300 million of its outstanding common shares, representing 11% of its market capitalization of $2.75 billion.
JPMorgan analyst Michael Rehaut on April 13 kept an Overweight rating on KB Home (NYSE:KBH) but lowered the firm’s price target on the shares to $39 from $49. The analyst maintains a “less constructive, more selective approach” to homebuilding stocks and does not expect any “material or sustained rebound” in this earnings season, mainly because he believes that the companies will not alleviate or address investor concerns.
According to Insider Monkey’s fourth quarter database, 36 hedge funds were bullish on KB Home (NYSE:KBH), up from 26 funds in the preceding quarter. The total stakes held by elite funds in Q4 amounted to $431.5 million. Ken Fisher’s Fisher Asset Management held the biggest position in the company, with 2.4 million shares worth $109.3 million.
4. D.R. Horton, Inc. (NYSE:DHI)
Number of Hedge Fund Holders: 54
D.R. Horton, Inc. (NYSE:DHI) is a Texas-based home building company that constructs and sells residential properties under the D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes brands. On April 13, Michael Rehaut from JPMorgan lowered the firm’s price target on D.R. Horton, Inc. (NYSE:DHI) to $82.50 from $100 and reiterated an Overweight rating on the shares, citing a selective approach to homebuilding names.
D.R. Horton, Inc. (NYSE:DHI) announced on April 14 that it has entered into a merger agreement with Vidler Water Resources, Inc. (NASDAQ:VWTR) for $15.75 per share in an all-cash transaction, representing a 39% premium to Vidler’s book value of equity. The company owns a portfolio of premium water rights and other water-related assets in the markets where D.R. Horton, Inc. (NYSE:DHI) needs water for development, but faces inadequate supply. The total value of the transaction is roughly $291 million and it is expected to conclude during the second quarter of 2022.
D.R. Horton, Inc. (NYSE:DHI) reported its Q4 2021 financial results on February 2, posting earnings per share of $3.17, beating market consensus by $0.37. Revenue over the period climbed 18.88% year-over-year to $7.05 billion, outperforming Street estimates by $330.48 million.
According to Insider Monkey’s Q4 data, 54 hedge funds placed long calls on D.R. Horton, Inc. (NYSE:DHI), compared to 51 funds in the third quarter. John Armitage’s Egerton Capital Limited is the leading stakeholder of the company, with 8.4 million shares worth $913.2 million.
3. M/I Homes, Inc. (NYSE:MHO)
Number of Hedge Fund Holders: 19
M/I Homes, Inc. (NYSE:MHO) constructs single-family homes in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee, catering to first-time, millennial, move-up, empty-nester, and luxury buyers.
M/I Homes, Inc. (NYSE:MHO) posted its Q4 earnings on February 2, reporting an EPS of $3.83, outperforming consensus estimates by $0.45. Revenue over the period jumped 16% from the prior-year quarter, coming in at $1.05 billion, topping analysts’ predictions by almost $70 million.
On February 17, M/I Homes, Inc. (NYSE:MHO) announced an increase in its existing share repurchase authorization of $100 million. With the increase, the company has raised the available authorization under the buy back program up to $148.5 million of its common shares.
According to Insider Monkey’s Q4 data, 19 hedge funds were bullish on M/I Homes, Inc. (NYSE:MHO), with collective stakes amounting to approximately $136 million, compared to 17 funds in the earlier quarter, holding stakes in M/I Homes, Inc. (NYSE:MHO) worth $90.75 million. Matthew Lindenbaum’s Basswood Capital held the leading position in the company, with 612,924 shares valued at more than $38 million.
2. Ladder Capital Corp (NYSE:LADR)
Number of Hedge Fund Holders: 6
Ladder Capital Corp (NYSE:LADR) was founded in 2008 and is headquartered in New York. It operates as a commercial real estate investment trust, offering mortgage loans to the commercial real estate market. Ladder Capital Corp (NYSE:LADR)’s Real Estate segment owns and invests in a portfolio of commercial and residential real estate properties, which are available for leasing.
On March 15, Ladder Capital Corp (NYSE:LADR) declared a $0.20 per share quarterly dividend, in line with previous. The dividend was distributed to shareholders on April 15. Ladder Capital Corp (NYSE:LADR) delivers a dividend yield of 6.62% as of April 22.
Coverage of Ladder Capital Corp (NYSE:LADR) was transferred from analyst Timothy Hayes to Eric Hagen at BTIG, who maintained a Buy rating and a $13.50 price target on the stock on March 11.
Among the hedge funds tracked by Insider Monkey, Ladder Capital Corp (NYSE:LADR) was found in the public stock portfolios of 6 funds at the end of December 2021, compared to 8 funds in the earlier quarter. Michael Gelband’s ExodusPoint Capital is the biggest shareholder of the company, with 342,199 shares worth over $4 million.
1. Lennar Corporation (NYSE:LEN)
Number of Hedge Fund Holders: 52
Lennar Corporation (NYSE:LEN) is based in Miami, Florida, operating via the Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, and Multifamily segments.
On April 12, Lennar Corporation (NYSE:LEN) declared a quarterly dividend of $0.375 per share. The dividend is payable on May 10, to shareholders of the company as of April 26. Lennar Corporation (NYSE:LEN)’s dividend yield on April 22 stood at 1.95%.
Lennar Corporation (NYSE:LEN) reported earnings for FQ1 2022 on March 16, posting an EPS of $2.70, beating market consensus by $0.12. Revenue for the quarter jumped 16.5% year-over-year to $6.20 billion, exceeding analysts’ forecasts by $14.85 million.
Maintaining a “less constructive, more selective approach” on housing stocks amid the current Federal Reserve funds tightening cycle, JPMorgan analyst Michael Rehaut on April 13 maintained an Overweight rating on Lennar Corporation (NYSE:LEN) but slashed the firm’s price target on the stock to $89 from $108.
According to Insider Monkey’s database, 52 hedge funds were bullish on Lennar Corporation (NYSE:LEN) at the end of December 2021, collectively owning stakes worth $2.18 billion. Edgar Wachenheim’s Greenhaven Associates held the leading position in the company, with more than 7 million shares valued at $835.8 million.
You can also take a look at 10 Best ETFs to Invest In for Retirement and 10 Monthly Dividend Stocks to Buy in April.
